Olney Hospital Board Rejects Tax Increase

The Olney Hamilton Hospital Board of Directors voted Aug. 23 to hold the line on its property tax rate for the coming fiscal year, rejecting a proposed increase recommended by its finance committee and administrator Michael Huff.

Board members Lyndsey Miller, Kathy Smith, Ron Rogers, and Dr. Jeremy Johnson said they would not support raising taxes after last year’s unexpected increase, which drew criticism from residents. The decision leaves the hospital district facing a projected $800,000 operating loss next year, largely due to the devaluation of wind farm assets in the taxing district.

“This is an unfortunate hit that came out of a lawsuit in South Texas,” Mrs. Miller explained. “We haven’t seen the final effects of the devaluation of the wind farm, and I don’t feel like our backs are against the wall. We’re doing everything right, and I would not want to lose the community’s goodwill.”

The finance committee had recommended adopting the notice and hearing limit of $0.484318 per $100 valuation, which would have reduced the loss to about $446,000. Instead, the board voted to keep the tax rate at last year’s level of $0.445670 per $100 valuation.

Mrs. Smith said the symbolic value of restraint outweighed the financial benefit of a tax hike. “I think the goodwill you gain from not raising taxes is unquantifiable,” she said. “The community is so disappointed in the past, and this is a small way to regain that.”

Mr. Rogers agreed, noting that the hospital foundation is preparing a capital campaign to raise funds for new equipment in the $33 million hospital facility now under construction, scheduled for completion in September 2026. “The goodwill is more important as far as a capital campaign,” Mr. Rogers said. “We’re not at the 35 cents (per $100 valuation) where we said we’d be, and this is an acknowledgment of that. I think it’s important we hold the rate steady.”

The hospital has faced financial strain in recent years, balancing debt obligations, operating costs, and construction expenses. But Mr. Huff reported that revenues are up 27 percent year over year, reflecting strong outpatient growth and improved performance at the Olney Family Clinic, which turned a profit for the first time since opening.

Board members said those gains, coupled with the community’s skepticism about last year’s tax hike and the cut to maternity services, persuaded them to forgo another increase.

The board will formally adopt the tax rate at its September meeting.